Question

When drawing a cost-volume-profit graph, how are the axes labeled? Multiple Choice A.The horizontal axis would...

When drawing a cost-volume-profit graph, how are the axes labeled?
Multiple Choice
A.The horizontal axis would be labeled with dollars (of cost or revenue), while the vertical axis would be labeled with number of units (volume or activity).
B.The horizontal axis would be labeled with dollars (of total fixed costs), while the vertical axis would be labeled with dollars (of total variable costs).
C.The horizontal axis would be labeled with number of units (volume or activity), while the vertical axis would be labeled with dollars (of cost or revenue).
D.None of these answers is correct.
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Answer #1

When drawing a cost-volume-profit graph the horizontal axis would be labelled with number of units (volume or activity), while the vertical axis would be labelled with dollars (of cost or revenue).

Therefore, the correct answer is C.

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